By George Glover
Commodity chemical stocks have been on a tear lately -- but their luck looked set to run out after the U.S. and Iran agreed a two-week cease-fire, subject to Tehran reopening the Strait of Hormuz.
Dow tumbled 6.8% LyondellBasell Industries cratered 8.4%, and CF Industries plunged 8% ahead of Wednesday's opening bell. Futures tracking the S&P 500 were 2.7% higher.
The Iran war gave the commodity chemical business a much-needed boost. The industry had been struggling for years due to severe oversupply and weak demand.
The conflict drove up oil prices, giving Dow and Lyondell an advantage since they make a lot of products from relatively lower-cost natural gas. The disruption of the Strait of Hormuz also sparked a surge in fertilizer prices, benefiting nitrogen and ammonia fertilizer maker CF. Around 25% to 35% of the global trade of fertilizer materials passes through the waterway.
All three stocks posted their best quarter ever over the first three months of 2026. Dow, Lyondell, and CF surged 78%, 86%, and 68%, respectively, over the period.
But President Donald Trump said early Wednesday that the U.S. would be "helping with the traffic buildup" through the waterway, after the White House and Tehran agreed a cease-fire late Tuesday.
That should pave the way for the red-hot commodity chemical trade to unwind.
Write to George Glover at george.glover@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 08, 2026 06:58 ET (10:58 GMT)
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